Canaccord maintains Buy on AngioDynamics with $15 target

Published 14/04/2025, 12:14
Canaccord maintains Buy on AngioDynamics with $15 target

On Monday, Canaccord Genuity maintained its Buy rating on AngioDynamics stock (NASDAQ:ANGO) with a steady price target of $15.00, representing significant upside from the current price of $9.29. According to InvestingPro data, the stock has shown strong momentum with a 44% gain over the past six months. The firm’s analyst highlighted AngioDynamics’ potential for growth in the current calendar year, particularly in its thrombectomy business, which is expected to expand through market growth and increased market share from its AlphaVac product. Looking ahead to calendar year 2026, the company anticipates an acceleration in its NanoKnife business, driven by the timing of reimbursement changes.

Investors have shown a keen interest in the growth trajectories and total addressable market (TAM) for AngioDynamics’ three core Med-Tech segments during a recent non-deal roadshow (NDR) featuring CEO Jim Clemmer and CFO Stephen Trowbridge. Management has conveyed a positive outlook for its Auryon product as well, although growth in the atherectomy market may be more moderate in comparison due to its maturity relative to the vascular thromboembolism (VTE) or focal prostate therapy markets.

Strategic interest in AngioDynamics has also been a topic of discussion, especially in light of the 8.0x EV/Sales multiple paid by Stryker Corporation (NYSE:SYK) for the acquisition of Neurovascular Interventional Systems (NARI). Analysts noted that AngioDynamics’ NanoKnife could be attractive to companies looking to expand their interventional oncology portfolios. InvestingPro analysis indicates the company’s current Fair Value suggests it may be undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.

The financial position of AngioDynamics was also emphasized, with the company having a clean balance sheet that includes $44.8 million in cash and equivalents and no debt. InvestingPro data confirms this strong financial position, showing a healthy current ratio of 2.21 and liquid assets exceeding short-term obligations. The firm is targeting cash flow positivity in the upcoming fiscal year, though InvestingPro Tips indicate analysts don’t expect profitability this year. Discover more insights about ANGO’s financial health and 12+ additional ProTips with an InvestingPro subscription. Canaccord Genuity’s analyst believes that AngioDynamics’ stock is currently undervalued, trading at 1.0x EV/Sales on its 2026 estimates, particularly given management’s record of consistently meeting or exceeding expectations. The reiterated Buy rating and $15 price target reflect confidence in the company’s growth prospects and valuation.

In other recent news, AngioDynamics reported financial results for the third quarter of fiscal year 2025, with net sales reaching $72.0 million, exceeding analysts’ forecasts of $71.0 million. The company’s Med Tech segment showed significant growth, with net sales increasing by 21.3% year-over-year to $31.3 million, while the Med Device segment experienced a decline of 17.6%, totaling $40.7 million. AngioDynamics reported a net loss of $4.4 million, or ($0.11) per share, which was notably lower than the estimated loss of $13.5 million. Analysts from H.C. Wainwright and Canaccord Genuity maintained a positive outlook on the company, with the former raising the stock target to $16 and the latter maintaining a $15 target, both affirming a Buy rating.

The company revised its full-year 2025 guidance, projecting net sales between $285 million and $288 million, reflecting expected growth of 14-16% for the Med Tech segment. The adjusted EBITDA guidance was increased to a range of $4.0 million to $5.0 million. Additionally, AngioDynamics is expected to receive a $5.5 million earn-out payment in the fourth quarter, potentially ending the quarter with approximately $55 million in cash. Canaccord Genuity analysts highlighted the potential of key products like Auryon, Mechanical Thrombectomy, and NanoKnife, with NanoKnife anticipated to benefit from reimbursement changes starting January 1, 2026. These developments underscore AngioDynamics’ strategic focus on high-margin Med Tech products and its efforts to drive profitability and growth.

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